Reliance set to return to bond market after 3 years, eyes Rs 12,500 crore fundraise: Reports
Reliance Industries is set to launch a bond sale worth 125 billion rupees, marking a significant comeback to the rupee bond market after almost three years. The five-year notes are expected to offer an attractive annual interest rate of 7.47 perce...
By Reuters | Updated:
Agencies
Mukesh Ambani's Reliance Industries is set to return to India's rupee bond market after nearly three years, five merchant bankers told Reuters late on Monday, with what would be the largest single-tranche fundraising by a rated firm since November 2023.
The oil-to-telecom conglomerate plans to raise Rs 12,500 crore ($1.32 billion) through a sale of five-year notes, at an annual coupon of 7.47%, and is set to invite bids from investors in the week ending September 18, according to bankers.
The issue would be RIL's first rupee bond offering since November 2023, when it raised 200 billion rupees in what was the largest local-currency debt sale by an Indian non-financial company.
The bankers requested anonymity as they are not authorised to speak to the media, while the company did not immediately reply to a Reuters email seeking comment outside normal business hours.
A sharp decline in yields on up to five-year bonds locally has made such funding cheaper than dollar debt sales, the bankers added.
The five-year government bond yield has plunged 33 basis points since the start of June, mainly backed by mammoth dollar inflows under the central bank's subsidised schemes.
Flows led by those in the non-resident dollar deposit scheme pulled down local yields, while higher US Treasury rates lifted the cost of dollar funding for Indian borrowers.
Large private banks are acting as arrangers for the deal, and are also set to partly subscribe to these bonds, the bankers added.
Meanwhile, the company is also mulling a 10-year bond issue and is in discussions with bankers and investors.
The oil-to-telecom conglomerate plans to raise Rs 12,500 crore ($1.32 billion) through a sale of five-year notes, at an annual coupon of 7.47%, and is set to invite bids from investors in the week ending September 18, according to bankers.
The issue would be RIL's first rupee bond offering since November 2023, when it raised 200 billion rupees in what was the largest local-currency debt sale by an Indian non-financial company.
The bankers requested anonymity as they are not authorised to speak to the media, while the company did not immediately reply to a Reuters email seeking comment outside normal business hours.
A sharp decline in yields on up to five-year bonds locally has made such funding cheaper than dollar debt sales, the bankers added.
The five-year government bond yield has plunged 33 basis points since the start of June, mainly backed by mammoth dollar inflows under the central bank's subsidised schemes.
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Flows led by those in the non-resident dollar deposit scheme pulled down local yields, while higher US Treasury rates lifted the cost of dollar funding for Indian borrowers.
Large private banks are acting as arrangers for the deal, and are also set to partly subscribe to these bonds, the bankers added.
Meanwhile, the company is also mulling a 10-year bond issue and is in discussions with bankers and investors.
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